Estrella facilitates acquisitions of UK Authorised Payment Institutions (API) — FCA-licensed companies with full Payment Services Regulations 2017 authorisation for payment processing, money remittance, and account information services.
In the United Kingdom, an “Authorised Payment Institution (API)” is the FCA’s designation for a fully licensed payment institution under the Payment Services Regulations 2017 (the UK’s implementation of the EU’s revised Payment Services Directive, PSD2). Note that “API” in this context is the UK regulatory abbreviation for Authorised Payment Institution — equivalent to a “Payment Institution (PI)” in EU member states.
UK APIs are authorised to provide all eight categories of payment services defined under PSD2: account information services, payment initiation services, money remittance, execution of payment transactions (including direct debits, card payments, and credit transfers), issuance of payment instruments, acquiring of payment transactions, services enabling cash to be placed on or withdrawn from a payment account, and execution of payment transactions where funds are covered by a credit line.
Brexit has changed the EU passporting landscape — UK APIs no longer enjoy automatic single-market rights into the EU/EEA. However, UK authorisation remains highly valuable for serving the UK domestic market (one of Europe’s largest payment markets) and for international operators who use a UK entity to access UK consumers and businesses.
The FCA’s authorisation process for a new API typically takes 6–12 months, with significant variability depending on the applicant’s readiness. The process requires extensive documentation including a business plan, financial projections, governance structure, fit-and-proper assessments of all controllers and key persons, IT and operational risk frameworks, AML/CFT policies, capital and own-funds calculations, and detailed safeguarding arrangements for client funds.
Acquiring an existing FCA-authorised API provides immediate operational capability — the licence is already in place, the safeguarding arrangements are established, the FCA reporting is current, and in many cases banking relationships and payment scheme memberships (Visa, Mastercard, Faster Payments) are also in place.
UK APIs are particularly valuable for international fintech operators who want UK presence without the time and uncertainty of a fresh FCA application. The acquisition route also avoids the risk of FCA refusal — an outcome that is not uncommon for inexperienced applicants and can permanently damage a corporate group’s ability to obtain UK authorisation.
UK APIs operate under the Payment Services Regulations 2017 and are supervised by the Financial Conduct Authority (FCA). The framework implements (with post-Brexit modifications) the EU’s revised Payment Services Directive 2 (PSD2).
Key regulatory obligations include initial capital requirements ranging from £20,000 to £125,000 depending on the services provided (or higher under the calculated own-funds methods), client fund safeguarding via segregated accounts at qualifying credit institutions or qualifying insurance, comprehensive AML/CFT compliance under the Money Laundering Regulations 2017, conduct of business rules under the FCA’s Banking Conduct of Business Sourcebook (BCOBS) where applicable, reporting requirements including REP-CRIM, FIN071, FSA042 and other specific PSR returns, complaint handling and FOS jurisdiction, and operational and security risk management aligned with FCA expectations and PSD2 RTS on strong customer authentication (SCA).
The FCA conducts ongoing supervision through periodic supervisory reviews, thematic reviews of the payments sector, and individual firm assessments. UK APIs must also comply with the Senior Managers and Certification Regime (SM&CR) for governance and individual accountability.
Estrella maintains a curated portfolio of FCA-authorised UK APIs available for acquisition. Available entities vary in scope (full PSD2 services vs subset), capital position, banking relationships, and operational maturity.
Each entity is subject to comprehensive due diligence: FCA register status and permissions scope, safeguarding arrangements and reconciliation history, AML/CFT framework and any historical breaches, capital adequacy and own-funds compliance, FCA correspondence and any past supervisory matters, banking and payment scheme relationships, and corporate and tax history. The acquisition process requires FCA notification and change-of-control approval — a process Estrella manages end-to-end with experienced UK regulatory counsel.
For current availability, scope details, and pricing, please contact our acquisitions team for a confidential discussion.
In the UK, “API” stands for “Authorised Payment Institution” — the FCA’s designation for a fully licensed payment institution under the Payment Services Regulations 2017. This is equivalent to a “Payment Institution (PI)” in EU member states. Both terms refer to the same regulatory regime under PSD2 (with post-Brexit UK modifications).
UK API acquisitions typically take 4–6 months. The corporate transfer can be completed in weeks, but FCA change-of-control approval is the gating item — typically 60–90 days from a complete Section 178 notification, though the FCA has up to 60 working days plus extensions. Estrella manages the full Section 178 process with specialist UK counsel.
No. Following Brexit, UK APIs no longer have automatic passporting rights into EU/EEA member states. UK APIs may serve UK customers and may serve non-EU customers globally, but EU-resident customers generally require an EU-licensed entity. Some operators address this by holding parallel UK and EU licences.
Yes, but the FCA requires fit-and-proper assessments of all “controllers” (persons holding 10% or more of shares or voting rights, directly or through structures). Non-UK individuals and entities may be controllers subject to satisfactory FCA assessment. The FCA is particularly attentive to source of funds, beneficial ownership transparency, and any adverse regulatory or legal history globally.
UK APIs are among the most valuable payment licences globally, reflecting both market size and regulatory rigour. Pricing varies based on permissions scope, capital position, banking relationships, payment scheme memberships, operational history, and any active customer book. Clean entities with full PSD2 scope command significant premiums. Contact us for current availability and indicative pricing.
Contact Estrella to discuss available FCA-authorised payment institutions. Our team provides comprehensive support including specialist UK regulatory counsel for the FCA Section 178 change-of-control process.
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